Bergen County father and son face securities fraud allegations

Dec 27, 2013

Bergen County father and son face securities fraud allegations

Posted By
Brickfield & Donahue

Authorities have filed a lawsuit against a father and son who allegedly
defrauded 26 investors out of $3.5 million. The New Jersey Bureau of Securities
contends that the 55-year-old father and his 34-year-old son, both of
Bergen County, sold promissory notes for a surgical center, promising
returns of 6 to 8 percent.

Reportedly, the two men were not licensed to sell the securities, and the
investments were not registered with the state. Allegedly, the medical
company was a front for a holding company for five other companies controlled
by the father. The lawsuit states that the defendants used most of the
money to buy high-end cars and real estate, among other extravagances.

The lawsuit is asking the court to impose penalties on the father and the
son and to prevent them from trading securities. Authorities have already
revoked the securities registration of the son, who had worked at a securities
firm but was fired after his employer learned about his activities with
his father.

Anyone accused of a white-collar crime, such as an investment scam, can
be looking at very high fines and possibly a long prison term.

Fraud can be criminal or civil in nature, which means that a conviction
can result in criminal penalties, civil penalties or both. If convicted
in a criminal trial, a person may be sentenced with a prison term, fines,
and probation.

In such cases, the accused needs to put up an aggressive defense in order
to be spared harsh sentencing. With the help of an experienced criminal
defense lawyer, the defendant may be able to have the charges reduced
or dropped. Alternatively, an out-of-court settlement to repay the plaintiffs
or a plea deal might bring about the same outcome.

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Nothing on this site should be taken as legal advice for any individual
case or situation. This information is not intended to create, and receipt
or viewing does not constitute, an attorney-client relationship.